Kenisha manufactures two styles of watchesthe Digital and the Classic. The following data pertain to the Digital:

Question:

Kenisha manufactures two styles of watches—the Digital and the Classic. The following data pertain to the Digital:
Variable manufacturing cost........................................................................ $120
Variable operating cost............................................................................... 30
Sales price.................................................................................................... 200
Kenisha’s monthly fixed expenses total $190,000. When Digitals and Classics are sold in the mix of 7:3, respectively, the sale of 2,000 total watches results in an operating income of $60,000. Compute the per watch for the Classic.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...